Full Text of SB1870 98th General Assembly
SB1870 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB1870 Introduced 2/15/2013, by Sen. Steven M. Landek SYNOPSIS AS INTRODUCED: |
| 230 ILCS 30/2 | from Ch. 120, par. 1122 | 230 ILCS 30/4 | from Ch. 120, par. 1124 | 230 ILCS 30/5 | from Ch. 120, par. 1125 | 230 ILCS 30/5.1 | from Ch. 120, par. 1125.1 | 230 ILCS 30/8 | from Ch. 120, par. 1128 |
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Amends the Charitable Games Act. Defines "house-backed game" and "player-backed game". Provides that certain bond requirements do not apply to player-backed games. Provides that the limit on the number of charitable games events that may be held in any one
premises per calendar year do not apply to charitable games events held at a municipal building. Removes language limiting the management or
operation
of the games to no more than 4 charitable games events during a calendar year. Provides that a municipality may provide the same premises for conducting charitable
games nights every Friday, Saturday, and Sunday (rather than for conducting 16 charitable games nights during a 12-month period). Makes other changes related to restrictions on the conduct of charitable games.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning gaming.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Charitable Games Act is amended by changing | 5 | | Sections 2, 4, 5, 5.1, and 8 as follows:
| 6 | | (230 ILCS 30/2) (from Ch. 120, par. 1122)
| 7 | | Sec. 2. Definitions. For purposes of this Act, the | 8 | | following definitions
apply:
| 9 | | "Charitable games" means the 14 games of chance involving | 10 | | cards, dice, wheels, random selection of numbers, and gambling | 11 | | tickets which may be conducted at charitable games events | 12 | | listed as follows: roulette, blackjack, poker, pull tabs, | 13 | | craps, bang, beat the dealer, big six, gin rummy, five card | 14 | | stud poker, chuck-a-luck, keno, hold-em poker, and merchandise | 15 | | wheel. | 16 | | "Charitable games event" or "event" means the type of | 17 | | fundraising event authorized by the Act at which participants | 18 | | pay to play charitable games for the chance of winning cash or | 19 | | noncash prizes. | 20 | | "Charitable organization" means an organization or | 21 | | institution organized and operated to benefit an indefinite | 22 | | number of the public. | 23 | | "Chips" means scrip, play money, poker or casino chips, or |
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| 1 | | any other representations of money, used to make wagers on the | 2 | | outcome of any charitable game. | 3 | | "Department" means the Department of Revenue.
| 4 | | "Educational organization" means an organization or | 5 | | institution organized and operated to provide systematic | 6 | | instruction in useful branches of learning by methods common to | 7 | | schools and institutions of learning which compare favorably in | 8 | | their scope and intensity with the course of study presented in | 9 | | tax-supported schools. | 10 | | "Fraternal organization" means an organization of persons | 11 | | having a common interest that is organized and operated | 12 | | exclusively to promote the welfare of its members and to | 13 | | benefit the general public on a continuing and consistent | 14 | | basis, including but not limited to ethnic organizations.
| 15 | | "House-backed game" means a game where (1) the player is | 16 | | playing against the sponsoring organization and (2) the | 17 | | sponsoring organization is staking the game being played and | 18 | | its bottom line is affected by who wins and who loses each hand | 19 | | played. | 20 | | "Labor organization" means an organization composed of | 21 | | labor unions or
workers organized with the objective of | 22 | | betterment of the conditions of
those engaged in such pursuit | 23 | | and the development of a higher degree of
efficiency in their | 24 | | respective occupations.
| 25 | | "Licensed organization" means a qualified organization | 26 | | that has obtained a license to conduct a charitable games event |
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| 1 | | in conformance with the provisions of this Act. | 2 | | "Non-profit organization" means an organization or | 3 | | institution organized and conducted on a not-for-profit basis | 4 | | with no personal profit inuring to anyone as a result of the | 5 | | operation.
| 6 | | "Organization": A corporation, agency, partnership,
| 7 | | association, firm, business, or other entity consisting of 2 or | 8 | | more persons joined by
a common interest or purpose.
| 9 | | "Person" means any natural individual, corporation, | 10 | | partnership, limited
liability company, organization as | 11 | | defined in this
Section, qualified organization, licensed | 12 | | organization, licensee under this Act, or volunteer.
| 13 | | "Player-backed game" means a game where (1) the players of | 14 | | the game are playing one another and not the sponsoring | 15 | | organization and (2) the outcome of the game does not affect | 16 | | the sponsoring organization because it does not have any money | 17 | | at stake in the game. | 18 | | "Premises" means a distinct parcel of land and the | 19 | | buildings thereon. | 20 | | "Provider" means the person or organization owning, | 21 | | leasing, or controlling premises upon which any charitable | 22 | | games event is to be conducted.
| 23 | | "Qualified organization" means:
| 24 | | (a) a charitable, religious, fraternal, veterans, | 25 | | labor or educational
organization or institution organized | 26 | | and conducted on a not-for-profit
basis with no personal |
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| 1 | | profit inuring to anyone as a result of the
operation and | 2 | | which is exempt from federal income taxation under Sections
| 3 | | 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10) or | 4 | | 501(c)(19) of the
Internal Revenue Code;
| 5 | | (b) a veterans organization as defined in Section 1.1
| 6 | | of the
"Bingo License and Tax Act"organized
and conducted | 7 | | on a not-for-profit basis with no personal profit inuring | 8 | | to
anyone as a result of the operation; or
| 9 | | (c) An auxiliary organization of a veterans | 10 | | organization.
| 11 | | "Religious organization" means any church, congregation, | 12 | | society, or organization founded for the purpose of religious | 13 | | worship. | 14 | | "Sponsoring organization" means a qualified organization | 15 | | that has obtained a
license to conduct a charitable games event | 16 | | in conformance with the provisions
of this Act.
| 17 | | "Supplier" means any person, firm, or corporation that | 18 | | sells, leases, lends, distributes, or otherwise provides to any | 19 | | organization licensed to conduct charitable games events in | 20 | | Illinois any charitable games equipment.
| 21 | | "Veterans' organization" means an organization comprised | 22 | | of members of which substantially all are individuals who are | 23 | | veterans or spouses, widows, or widowers of veterans, the | 24 | | primary purpose of which is to promote the welfare of its | 25 | | members and to provide assistance to the general public in such | 26 | | a way as to confer a public benefit. |
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| 1 | | "Volunteer" means a person recruited by a licensed | 2 | | organization who voluntarily performs services at a charitable | 3 | | games event, including participation in the management or | 4 | | operation of a game, as defined in Section 8.
| 5 | | (Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
| 6 | | (230 ILCS 30/4) (from Ch. 120, par. 1124)
| 7 | | Sec. 4. Licensing Restrictions. Licensing for the | 8 | | conducting of
charitable games is subject to the following | 9 | | restrictions:
| 10 | | (1) The license application, when submitted to the | 11 | | Department of Revenue,
must contain a sworn statement | 12 | | attesting to the not-for-profit character
of the | 13 | | prospective licensee organization, signed by a person | 14 | | listed on the application as an owner, officer, or other | 15 | | person in charge of the necessary day-to-day operations. | 16 | | The application shall contain the
name of the person in | 17 | | charge of and primarily responsible for the
conduct of the | 18 | | charitable games. The person so designated shall be
present | 19 | | on the premises continuously during charitable games.
| 20 | | (2) The license application shall be prepared by the | 21 | | prospective
licensee organization or its duly authorized | 22 | | representative in accordance
with the
rules of the | 23 | | Department of Revenue.
| 24 | | (2.1) The organization shall maintain among its books | 25 | | and records a list of the names,
addresses, social security |
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| 1 | | numbers, and dates of birth of all persons who will
| 2 | | participate in the management or operation of the games, | 3 | | along with a sworn
statement made under penalties of | 4 | | perjury, signed by a person listed on the application as an | 5 | | owner, officer, or other person in charge of the necessary | 6 | | day-to-day operations, that the persons listed as | 7 | | participating in the
management or operation of the games | 8 | | are bona fide members, volunteers as
defined in Section 2, | 9 | | or employees of the applicant , that these persons have
not
| 10 | | participated in the management or operation of more than 4 | 11 | | charitable games
events conducted by any licensee in the | 12 | | calendar year, and that these persons
will receive no | 13 | | remuneration or compensation, directly or indirectly from | 14 | | any
source, for participating in the management or | 15 | | operation of the games. Any
amendments to this listing must | 16 | | contain an identical sworn statement.
| 17 | | (2.2) (Blank).
| 18 | | (3) Each license shall state the date, hours and
at | 19 | | what
locations the licensee is permitted to conduct | 20 | | charitable games.
| 21 | | (4) Each licensee shall file a copy of the license with | 22 | | each
police
department or, if in unincorporated areas, each | 23 | | sheriff's office whose
jurisdiction includes the premises | 24 | | on which the charitable games are
authorized under the | 25 | | license.
| 26 | | (5) The licensee shall prominently display the license |
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| 1 | | in the
area where the licensee is to conduct charitable | 2 | | games. The licensee shall likewise display, in the form and | 3 | | manner prescribed by the Department, the provisions of | 4 | | Section 9 of this Act.
| 5 | | (6) (Blank).
| 6 | | (7) Each licensee shall obtain and maintain a bond for | 7 | | the
benefit of
participants in games conducted by the | 8 | | licensee to insure payment to the
winners of such games. | 9 | | Such bond discretionary by the Department and shall be in | 10 | | an amount established by rule
by the Department of Revenue. | 11 | | In a county with fewer than 60,000
inhabitants, the | 12 | | Department may waive the bond
requirement upon a showing by | 13 | | a licensee that it has sufficient funds on
deposit to | 14 | | insure payment to the winners of such games. The bond | 15 | | requirement contained in this paragraph (7) does not apply | 16 | | to player-backed games.
| 17 | | (8) A license is not assignable or transferable.
| 18 | | (9) Unless the premises for conducting charitable | 19 | | games are provided by
a
municipality, the Department shall | 20 | | not issue a license
permitting a
person, firm
or | 21 | | corporation to sponsor a charitable games night if the | 22 | | premises for the
conduct of the charitable games has been | 23 | | previously used for 8
charitable
games nights during the | 24 | | previous 12 months.
| 25 | | (10) Auxiliary organizations of a licensee shall not be
| 26 | | eligible for a
license to conduct charitable games, except |
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| 1 | | for auxiliary organizations
of veterans organizations as | 2 | | authorized in Section 2.
| 3 | | (11) Charitable games must be conducted in accordance | 4 | | with
local
building and fire code requirements.
| 5 | | (12) The licensee shall consent to allowing the | 6 | | Department's
employees
to be present on the premises | 7 | | wherein the charitable games are conducted
and to inspect | 8 | | or test equipment, devices and supplies used in the conduct
| 9 | | of the game.
| 10 | | Nothing in this Section shall be construed to prohibit a | 11 | | licensee that
conducts charitable games on its own premises | 12 | | from also obtaining a
providers' license in accordance with | 13 | | Section 5.1.
The maximum number of charitable games events that | 14 | | may be held in any one
premises is limited to 8 charitable | 15 | | games events per calendar year ; however, this limitation does | 16 | | not apply to charitable games events held at a municipal | 17 | | building .
| 18 | | (Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
| 19 | | (230 ILCS 30/5) (from Ch. 120, par. 1125)
| 20 | | Sec. 5. Providers' License. The Department shall issue a | 21 | | providers'
license permitting a person, firm or corporation to | 22 | | provide
premises for the conduct of charitable games. No | 23 | | person, firm or
corporation may rent or otherwise provide | 24 | | premises without having first
obtained a license. Applications | 25 | | for providers' licenses shall be made in writing in accordance |
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| 1 | | with Department rules. The Department shall license providers | 2 | | of charitable games at a nonrefundable annual fee of $50, or | 3 | | nonrefundable triennial license fee of $150. Each providers' | 4 | | license is valid for one year
from the date of issuance, or 3 | 5 | | years from date of issuance for a triennial license, unless | 6 | | extended, suspended,
or revoked by Department action
before
| 7 | | that date. Any extension of a providers' license shall not | 8 | | exceed one year. A provider may receive reasonable compensation | 9 | | for the provision
of the premises. Reasonable expenses shall | 10 | | include only those expenses defined as reasonable by rules | 11 | | adopted by the Department. A provider, other than a
| 12 | | municipality, may not provide
the same premises for conducting | 13 | | more than 8 charitable games nights
per year.
A provider shall | 14 | | not have any interest in any suppliers' business, either
direct | 15 | | or indirect.
A municipality may provide the same premises for | 16 | | conducting 16 charitable
games nights every Friday, Saturday, | 17 | | and Sunday during a 12-month period . No employee, officer, or | 18 | | owner of a
provider may participate in the management or | 19 | | operation of a charitable games
event, even if the employee, | 20 | | officer, or owner is also a member, volunteer, or
employee of | 21 | | the charitable games licensee. A provider may not promote or
| 22 | | solicit a charitable games event on behalf of a charitable | 23 | | games licensee or
qualified organization.
Any qualified | 24 | | organization licensed to conduct a
charitable game need not | 25 | | obtain a providers' license if such games are to
be conducted | 26 | | on the organization's premises.
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| 1 | | (Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
| 2 | | (230 ILCS 30/5.1) (from Ch. 120, par. 1125.1)
| 3 | | Sec. 5.1. If a licensee conducts charitable games on its | 4 | | own premises,
the licensee may also obtain a providers' license | 5 | | in accordance with
Section 5 to allow the licensee to rent or | 6 | | otherwise provide its
premises to another licensee for the | 7 | | conducting of an additional 4
charitable games events. The | 8 | | maximum number of charitable games events that
may be held at | 9 | | any one premises is limited to 8 charitable games events per
| 10 | | calendar year ; however, this limitation does not apply to | 11 | | charitable games events held at a municipal building .
| 12 | | (Source: P.A. 94-986, eff. 6-30-06.)
| 13 | | (230 ILCS 30/8) (from Ch. 120, par. 1128)
| 14 | | Sec. 8. The conducting of charitable games is subject to | 15 | | the following
restrictions:
| 16 | | (1) The entire net proceeds from charitable games must | 17 | | be exclusively
devoted to the lawful purposes of the | 18 | | organization permitted to conduct
that game.
| 19 | | (2) No person except a bona fide member or employee of | 20 | | the
sponsoring organization, or a volunteer recruited by | 21 | | the sponsoring
organization, may participate in the | 22 | | management or operation of the
game.
A person participates | 23 | | in the management or operation of a charitable game
when he | 24 | | or she sells admission tickets at the event; sells, |
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| 1 | | redeems, or in any
way assists in the selling or redeeming | 2 | | of chips, scrip, or play money;
participates in the
| 3 | | conducting of any of the games played during the event, or | 4 | | supervises, directs
or instructs anyone conducting a game; | 5 | | or at any time during the hours of the
charitable games | 6 | | event counts, handles, or supervises anyone counting or
| 7 | | handling any of the proceeds or chips, scrip, or play money | 8 | | at the event. A
person who is present to
ensure that the | 9 | | games are being conducted in conformance with the rules
| 10 | | established by the licensed organization or is present to | 11 | | insure that the
equipment is working
properly is considered | 12 | | to be participating in the management or operation of a
| 13 | | game. Setting up, cleaning up, selling food and drink, or | 14 | | providing security
for persons or property at the event | 15 | | does not constitute participation in the
management or | 16 | | operation of the game.
| 17 | | Only bona fide members, volunteers as defined in | 18 | | Section 2 of this Act, and
employees of the sponsoring | 19 | | organization may participate in the management or
| 20 | | operation of the games. Participation in the management or
| 21 | | operation
of the games is limited to no more than 4 | 22 | | charitable games events, either of the sponsoring | 23 | | organization or any other licensed organization, during a | 24 | | calendar year.
| 25 | | (3) No person may receive any remuneration or | 26 | | compensation either
directly or
indirectly from any |
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| 1 | | licensed organization source for
participating in the | 2 | | management or operation of the game.
| 3 | | (4) No single bet at any house-backed game may exceed | 4 | | $10.
| 5 | | (5) A bank shall be established on the premises to | 6 | | convert currency into
chips, scrip, or other form of play | 7 | | money which shall then be used to play
at
games of chance | 8 | | which the participant chooses. Chips, scrip, or play money
| 9 | | must be permanently monogrammed with the logo of the | 10 | | licensed organization or of the
supplier. Each participant | 11 | | must be issued a receipt indicating the amount
of chips, | 12 | | scrip, or play money purchased.
| 13 | | (6) At the conclusion of the event where house-backed | 14 | | games are played, or when a the participant leaves, he
may | 15 | | cash in his chips, scrip, or play money in exchange for | 16 | | currency not to
exceed $250 or noncash prizes. Each | 17 | | participant shall sign for any receipt
of prizes. The | 18 | | licensee shall provide the Department of Revenue with a
| 19 | | listing of all prizes awarded, including the retail value | 20 | | of all prizes awarded.
| 21 | | (7) Each licensee shall be permitted to conduct | 22 | | charitable games on
not more than 6 4 days each year. | 23 | | Nothing in this Section shall be construed to prohibit a | 24 | | licensee that conducts charitable games on its own premises | 25 | | from also obtaining a providers' license in accordance with | 26 | | Section 7 of this Act.
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| 1 | | (8) Unless the provider of the premises is a | 2 | | municipality, the
provider of the premises may not rent or | 3 | | otherwise provide the
premises for the conducting of more | 4 | | than 8 charitable games nights per year.
| 5 | | (9) A charitable games event is considered to be a | 6 | | one-day event and charitable games may not be played | 7 | | between the hours of 2:00 a.m.
and noon.
| 8 | | (10) No person under the age of 18 years may play or | 9 | | participate in the
conducting of charitable games. Any | 10 | | person under the age of 18 years
may be within the area | 11 | | where charitable games are being played only
when | 12 | | accompanied by his parent or guardian.
| 13 | | (11) No one other than the sponsoring organization
of | 14 | | charitable games must have a proprietary
interest in the | 15 | | game promoted.
| 16 | | (12) Raffles or other forms of gambling prohibited by | 17 | | law shall not be
conducted on the premises where charitable | 18 | | games are being conducted.
| 19 | | (13) Such games are not expressly prohibited by county
| 20 | | ordinance for
charitable games conducted in the | 21 | | unincorporated areas of the county or
municipal ordinance | 22 | | for charitable games conducted in the municipality and
the | 23 | | ordinance is filed with the Department of Revenue. The | 24 | | Department
shall provide each county or municipality with a | 25 | | list of organizations
licensed or subsequently authorized | 26 | | by the Department to conduct
charitable games in their |
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| 1 | | jurisdiction.
| 2 | | (14) The sale of tangible personal property at | 3 | | charitable games is
subject to all State and local taxes | 4 | | and obligations.
| 5 | | (15) Each licensee may offer or conduct only the games
| 6 | | listed
below,
which must be conducted in accordance with
| 7 | | rules posted by the organization. The organization | 8 | | sponsoring charitable
games shall promulgate rules, and | 9 | | make printed copies available to
participants, for the | 10 | | following games: (a) roulette; (b) blackjack; (c)
poker; | 11 | | (d) pull tabs; (e) craps; (f) bang; (g) beat the dealer; | 12 | | (h) big
six; (i) gin rummy; (j) five card stud poker; (k) | 13 | | chuck-a-luck; (l) keno;
(m) hold-em poker; and (n) | 14 | | merchandise wheel. A licensee need not offer or
conduct | 15 | | every game permitted by law.
The conducting of games not | 16 | | listed above is prohibited by this Act.
| 17 | | (16) No unlicensed slot machines or | 18 | | coin-in-the-slot-operated devices
that allow a participant | 19 | | to play games of chance shall be permitted to be used at | 20 | | the location and during the time at which the charitable | 21 | | games are being conducted.
| 22 | | (17) No cards, dice, wheels, or other equipment may be | 23 | | modified or
altered
so as to give the licensee a greater | 24 | | advantage in winning, other than as
provided under the | 25 | | normal rules of play of a particular game.
| 26 | | (18) No credit shall be extended to any of the |
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| 1 | | participants.
| 2 | | (19) (Blank).
| 3 | | (20) A supplier may have only one representative | 4 | | present at the charitable
games event, for the exclusive | 5 | | purpose of ensuring that its equipment is not
damaged.
| 6 | | (21) No employee, owner, or officer of a consultant | 7 | | service hired by a
licensed organization to perform | 8 | | services at the event including, but not
limited to, | 9 | | security for
persons or property at the event or services | 10 | | before the event including, but
not limited to, training | 11 | | for volunteers
or advertising may participate in the | 12 | | management or operation of the games. However, a consultant | 13 | | hired by a licensed organization may attend the event to | 14 | | consult and advise his or her client. Advice and on-site | 15 | | training does not constitute management of the event.
| 16 | | (22) (Blank).
| 17 | | (Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
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